Hello,
This week, we bring news of HMRC examining loans to participators where tax may not have been properly accounted for, the November 2025 Employment-Related Securities (ERS) Bulletin, and an important Upper Tribunal (UT) decision in the context of employee incentivisation arrangements.
The UT has published its decision in Michael Saunders v HMRC. Here, an employee was granted ‘Stock Appreciation Rights’ (SARs). These SARs were not securities or securities options, but instead, contingent payment rights that would be triggered on a sale, or partial sale, of the employing company.
Two questions were posed to the UT. Firstly, was it the grant of SARs that gave rise to a taxable event, or the receipt of a payment? Secondly, as the taxpayer had become non-UK resident when the payment under the SARs was made, did the payment relate to that period of non-UK residence, or was it earned over earlier years of UK residence? Take a look at our summary to discover the UT’s conclusions.
In other news, HMRC are contacting tax agents of companies that may have underpaid s.455 tax on loans made to participators due to relief being claimed on anticipated future loan repayments that were not subsequently made. This serves as a reminder to follow up with clients to ensure that any agreed-upon actions that affect tax outcomes are actually carried out.
With the Autumn Budget now less than a fortnight away, you can find details below of the resources rossmartin.co.uk and 20:20 Innovation can provide to help you and your clients navigate the Chancellor’s announcements, including a branded client newsletter and post-budget webinar.
More news, cases, and updates follow.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Autumn Budget Analysis, Client Newsletter & Webinar
The 2025 Autumn Budget is shaping up to be one of the most consequential in recent memory, making it more important than ever for you and your clients to stay ahead of the field.
Our Budget resources will provide you with the tools you need to communicate with your clients and advise on the planning steps and opportunities available.
- Budget analysis: Sign up to rossmartin.co.uk now for access to our full Budget 2025 subscriber guides.
- Be kept up to date over the coming days and weeks as Budget announcements take shape, the Finance Bill is published, and planning opportunities arise.
- Comprehensive client newsletter: a branded Budget newsletter for your firm to send to clients. Delivered in PDF format by 7am on 27 November (when ordered by 5pm on 24 November).
- Order now at £260+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
- Budget Update webinar: the accountants’ guide and insights – planning strategies and more. Live at 10am on 28 November and on demand thereafter.
- Order now at £99+VAT per person.
- Combination deal (save £99+): Budget client newsletter + firm-wide access to the Budget Update webinar (book as many of your team as you wish).
- Order now at £260+VAT with additional discounts available for rossmartin.co.uk subscribers and 20:20 Innovation Platinum and Premier Plus members.
Quick News
HMRC contacting agents over participator loans
HMRC have identified companies that may have underpaid s.455 tax in respect of loans made to participators. The agents of affected companies are being contacted by email, asking them to check whether relief has been correctly claimed in Corporation Tax returns that were filed before April 2025.
Employment-Related Securities Bulletin November 2025
HMRC have released the November 2025 edition of the Employment-Related Securities (ERS) Bulletin. It contains some useful information and important reminders around the ERS reporting process. Here is our enhanced version.
R&C Brief 6 (2025): VAT deduction on insurance intermediary services supplied outside the UK
HMRC have published 'Revenue and Customs Brief 6 (2025): VAT deduction on insurance intermediary services supplied outside of the UK'. This explains a change in the right for input tax deduction for insurance intermediary services supplied outside the UK before 31 December 2023.
NAO flags fraud and error at HMRC
The National Audit Office (NAO) has published its departmental overview, 'HM Revenue & Customs 2024-25'. While there are signs of performance improvement, the Comptroller and Auditor General (C&AG) once again issued a qualified audit opinion on HMRC’s accounts due to material levels of error and fraud in Child Benefit, Corporation Tax research and development reliefs, and personal tax credits expenditure.
Tax Cases
Employment incentive plan payment taxable on non-resident
In Michael Saunders v HMRC [2025] UKUT 00374, the Upper Tribunal (UT) found that a payment made to an individual under their employer's Long-Term Incentive Plan after becoming non-UK resident was taxable as employment income. The payment was earned during his UK-based employment and was not attributable to the overseas part of the split tax year.
Employment costs for medical staff not exempt for VAT
In 1st Alternative Medical Staffing Ltd v HMRC [2025] TC09678, the First Tier Tribunal (FTT) found that reimbursed employment costs that related to the supply of medical staff were not exempt from VAT.
Editor's Choice
Trust Registration Service
What is the Trust Registration Service? What trusts does it apply to? What are the requirements and deadlines?
IHT: Normal Expenditure Out of Income (gifts)
When is normal expenditure out of income exempt for Inheritance Tax (IHT)? How do you claim the exemption?
Guides & Updates
Self-employed
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Incorporation
Goodwill & incorporation: Tax issues
What are the tax issues concerning Intangible Property (IP) assets, such as goodwill, on incorporation? What tax reliefs apply if you buy and sell goodwill and IP? What are the valuation and clearance procedures?
Directors & Companies
Travel rules for owner-managers
When are travel costs allowable? What are the temporary workplace rules and what is a permanent workplace? What other expenses can be claimed?
Employers
Salary sacrifice & optional remuneration schemes (OPRA)
What is a salary sacrifice or optional remuneration arrangement? How is it taxed?
Private Client & Estate Planning
Interest: Peer-to-peer lending
What is the tax treatment of interest received on peer-to-peer loans by individual lenders?
CGT: Rollover Relief
What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset?
Capital Allowances
Cars, vans & other four-wheel vehicles: Allowances
What capital allowances are available for vehicles? How does HMRC classify what is a car or what is a van?
Land & Property
Investment Zones
What is an Investment Zone? Where are Investment Zones located? What are the tax advantages of running a business from an Investment Zone?
Freeports
What are Freeport special tax sites? Where are they located? What are the tax advantages?
Overseas & Residence
Non-Resident Landlord Scheme
What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?
More Tax Guides
Soft Drinks Industry Levy
What is the Soft Drinks Industry Levy? When is it payable? When are returns due? What drinks are exempt? What are the penalties for compliance failures?
VAT
Health and welfare: VAT
When do reduced rating, zero-rating and VAT exemption apply to services relating to medical care, health and welfare? What are the rules?
Tax Tools & Calculators
Tax tools & calculators
We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Budget Update
- Monthly Tax Update - November 2025
- Practice Insight - November 2025 (free)
- Monthly Tax Update - October 2025
- Practice Insight - October 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 6 November 2025
- HMRC now sending MTD mandation letters
- Legislative proposals consultation relating to Welsh Tax Acts
- ABAB report finds slight improvement in interaction with HMRC
- POS trade benefit test met
- Cosmetic treatments VAT case remitted to FTT
- Property development input VAT recovery denied
- Staff, Bureaux or Agencies and VAT
- Business Investment Relief (BIR)
- Badges of Trade: Are you trading or not?
- Medical benefits and health checks
- Loan stock: QCBs or Non-QCBs
- Pensions: Tax rules and planning ...More
Subscribe for news, guides, tools & more
Subscribe now and unlock the site. Subscriptions begin at £56 (+ VAT) per month. All subscriptions are for a 12-month term.
What do you get?
- A comprehensive practical tax database of guides, checklists, briefings and practice notes, and access to all our time-saving calculators and tax tools.
- 25% discount on Virtual Tax Partner services.
- Read everything in our comprehensive weekly SME tax news summary. We do the reading, then summarise legislation, HMRC guidance, analyse official reports and cherry-pick the best of the press and the rest.
- Commission guides and checklists for your own practice.